Did overconfidence play a part in the banking crisis?

Overconfidence could have been partially responsible for the banking collapse – and here’s why.

People who are overconfident fool others into believing they are more talented than they really are and those with an inflated view of their own abilities are more likely to succeed at work.

In turn, that same group is more likely to overestimate other people’s talents, and therefore take greater risks. It could partially explain banking collapses and other disasters, according to new research.